What's your favorite way to eat chicken?
In nugget form
Ewww. I'm a vegetarian/vegan.
Don't call it a comeback! Not yet, anyway. After registering a new annual low yesterday following an ill-received earnings report, Tyson Foods has undone all of yesterday's losses and then some. In late-morning trading, the stock is up 7.5%.
The catalyst behind today's jump in the shares of the meat processor was an upgrade from Deutsche Bank, which adjusted its rating to buy from hold. The broker also lifted its 12-month price target by 11% to $20 from $18. Citing some concerns, including processing problems and rising commodity costs, Deutsche opined that with the stock collapsing to around $14, it is clear the market has swung the other way [toward pessimism] and is now myopically focused on the commodity risks.
Today's gap higher has taken the shares atop their 10-day moving average, but the 20-day still looms overhead. This descending trendline has not been breached to the upside since October 11. The stock is also back above its 80-month moving average, but the 160-month trendline is located just above Tyson's current level.